organisational management

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RELATION OF THE READINGS TO THE PASSAGE
Operation and strategy
Operations from a business definition mean the day to day functioning of a business undertaken to generate profits CITATION Nig15 l 1033 (N and Lewis). Another term that is closely related to operations is operations management. This, in the briefest possible way that it can be put, is the design, execution, and control of activities that convert resources into the required and desired goods and services. It is also the implementation of a company’s business strategy (Achieving operational excellence)
Operations management can be applied to many different industries. For instance, in the military division of the country, it is very important for the operations of a platoon be looked into to ensure the overall success of the entire force. (Operation in Practice)
The strategy is the formulation and implementation and evaluation of decisions that will enable an organization to achieve its long-term objectives. The biggest part about it lies in the development of specific processes to and programs to achieve an organization’s goals (Business Strategies).
In today’s competitive globe business heads are required to not only understand but also to be able to apply in practice the differences between the strategy and operations. There are a number of hazards involved in involving too much in one part of the business. To give just as an example if company managers focus too much on the strategic side of a business then they will lose out on the profitability of efficient day to day running of the organization (Achieving operational excellence).

The conflict between where to focus one’s attention between the strategic measure and the operational measures and what should be given more emphasis. This conflict led to the establishment of a new term called operations strategy. This term is different from corporate strategy. Corporate strategy is the overall scope and direction of business. It involves all the business strategies and operations that will be implemented to achieve a corporate mission or objective. It also looks into how different operations work together to achieve that same goal. On the other hand operation strategy is the way in which company assets and other resources are lined up and put to use so as to achieve the corporate objectives (NRL operations strategies).
Components of operation strategy
The degree of vertical integration to be done. This refers to the amount of outsourcing and in-house servicing that you want to do.
The capacity of operations. Here is where a company considers how much output is expected from your company.
The location that you operate in. The customer point of service, as well as the geographical focus of your business, is considered in this content part of the operation strategy. It is important that every business is specifically placed so as to reach the largest market and still run in a cost effective manner.
Process technology. The current industries and businesses are embracing innovations brought about by technological changes. To successfully implement any strategy then technology must be a key factor in the planning of day to day activities.
From the passage, it is noted that the company in question focuses very much on the operations of the business (Top 5- four V’s). This is because they aim at profit maximization. However giving too much into an operations model business can have tragic consequences. This is why the company in the passage should take on a business model based on both operation and strategy as it has the following benefits
It acts as a guiding principle to achieving the overall corporate goal.
It encourages flexibility and nature to embrace change whenever it is needed.
Topic Three.
From topic three the following items are covered. The first item is lean operations then there is quality management and the concept of (BPR) Business process reengineering.
Business process reengineering
BPR, as it is popularly referred to in many business circles, involves the radical redesigning of core business processes to achieve dramatic improvements in productivity, cycle times and quality. The aim of business process reengineering is so that a company can deliver more substance and value to a consumer within their required standards (Business processing and reengineering).
Steps that are involved in business process reengineering procedure
Refocusing company values on meeting consumer needs. This will enable a company to be able to attract a larger market share since its customers will feel valued and appreciated. It also enhances brand loyalty due to better treatment of the customer.
Redesigning core processes. The best way to know what processes require changing is by using information that is around the workplace and in the public domain. The processes can then be downsized, completely eliminated or advanced by the use of technology.
Improve the business process across the organization.
Reengineering can be used to do the following
1. Reduce the costs and cycle time
Business process reengineering can be used to reduce the costs and cycling time by removing unproductive activities and also getting rid of employees who perform these activities. This can be done by the use of teams. These teams reduce the need for management layers and improve information flows.
2. Work specialization and division can also be achieved through the use of the reengineering process.
BPR can be used to make the business more efficient and profitable. By using division of labor a lot of business risks can be mitigated and thus save the business a lot of costs (Business processing and reengineering).
Lean operations
This is another topic within the third reading for the week. Lean operations are the method of production where there is as much waste elimination as possible. Waste in this means unused raw material and inventories and space is minimized (Six sigma daily).
Benefits of lean operations include
Reduced costs due to saving of inventories
They ensure that qualities are improved. Due to ensuring that waste is minimized the process of production is made more effective.
Increased productivity. The main aim of the lean production process is to increase production but still be expected to reach the customer expectation.
The other topic in question is total quality management. This is where the company looks into the expectations of the customer and tries to reach the value that the customer requires. This involves some practices like examining costs and developing support systems to ensure that there is proper quality management.
The next topic that relates to the passage is supply chain management. This is the aspect of the business where its relationship with its customers and suppliers is evaluated and determined. The distribution network and the receipt of raw materials are very important for any business. The chain of communication and the relationship between the form and the suppliers is very important (Business Processing and reengineering).
Supply chain management does not only refer to the movement of physical inventory along the lines of production until it reaches the hands of the consumers; it also refers to the movement of data and information.
Supply chain management can be used to reduce stock levels increases sales and revenue margins. To make the entire process cheaper and easy to complete companies are looking to software solutions. There is a myriad of software solutions to help a business manage its supply chains in a more effective manner.
Some examples of supply chain software may include:
Customer requirement processing
This requires the quick flow of information so that it can be sustained. This is where there is so as to ensure customer satisfaction the requirements of a customer’s order are taken in a very specific manner and quickly communicated to the supplier. The supplier is then expected to deliver the required raw materials according to the desire of the customer. If that is not entirely possible then any changes made to the order must be communicated as fast as possible.
Inventory management
It is a very vital stage of the (SMC) Supply Chain Management. This stage ensures that the demand and supply are equalized and always met by the business. It involves forecasting of the inventory needs of a company. It is known that having too much inventory carries with it as many costs as it does risks. However, being under stocked is just as dangerous. Whereas it might not carry as many risks, being under stocked can lead to not meeting demand as it falls due and therefore results in the decrease in consumer confidence CITATION Bar16 l 1033 (Ballard).
Warehouse management
This is where the business designs a system to support the warehouses. The warehouse is where the unused inventory or finished goods of a manufacturing plant can be kept. Proper development and management of this resource are therefore important to achieve the enterprises’ objectives CITATION Bar16 l 1033 (Ballard).
Return management
Another sector covered by supply chain management is the return policy of the business. These covers return from consumers and to suppliers. With an effective policy being set out it makes it easier to have guiding principles on how that should be done. It makes it easier to the consumer CITATION Bar16 l 1033 (Ballard).
The supply chain management strategy is a very dynamic strategy as it is affected by many factors. It is therefore very prone to change. Companies that take up this strategy of operations should then be able to bend and embrace the myriad of changes that they will have to make. However, in the long run, the system is both costs effective and causes a significant increase in production as well as consumer satisfaction CITATION Bar16 l 1033 (Ballard).
From the passage, the use of the supply chain management strategy is seen in the distribution of products from the supplier to the end user. Elaborate systems are created to make the transition and exchanges as pleasant as possible and easy to handle. This is done to ensure that every customer receives value for every shilling they spend in the company. It is also a very good strategy to attract customers and retain the existing market share.
Part two
Relation of the learning material to an organization
In the current automobile business, a lot of competition has arisen due to innovation and technological advancement. To have a competitive edge industry players are now looking into an efficient and lean supply chain management, proper inventory management strategies, adequate quality control measures and business re-engineering strategies to make themselves better. This is because such moves enable them to cut costs substantially and to even mitigate the risks involved in doing business CITATION Jef041 l 1033 (Liker) Started in 1937, Toyota Corporation is a car manufacturing, assembly, designer and seller of both commercial and personal cars. Over the years the car manufacturing mogul has achieved success by acquiring different car brands to its name. Some of these brands include; Lexus and Hino. It is the largest manufacturer of automobiles and the eighth largest company in the world. With respect to the financial period, 2012/2013 Toyota had about 213 billion in form of revenue. In the same year, it is approximated to have employed over 333497 employees. The company has branches in most parts of the world including the USA, South Africa, and India. It has over 70 brands attached to its name and also a variety of vehicle models and types. These range from hybrids to normal saloon cars.
The company is famed and studied numerous times for its Just in Time method of production. This is a production method where production is done only when there is an order that has been placed by a customer. The company has had years to perfect on the policy and now boasts of having the leanest, in terms of costs and risks involved, production method CITATION Joh11 l 1033 (Mangan and Lalwani).
The Toyota way that is adopted annually has a zero tolerance towards wasteful production. Waste, in this case, is any amount of resources that are not used optimally. To minimized waste, the company adopted a system where if there is a problem in the line of production the entire chain is stopped until that particular problem is solved. It also only orders raw materials when requires.
With such stringent production procedures, Toyota has made its supply chain management a priority there exists the need to keep airtight supply mechanisms. The company’s suppliers are mostly within a 56-mile radius from the nearest manufacturing plant. This ensures that they can be reached quite easily and there is not much time between placing an order and receiving it since they are close together. The company also makes it a policy to maintain good relationships with its suppliers. To make this bond strong the company even participates in top level employee exchange programs CITATION EBe02 l 1033 (Bernroider).
The customer is the most important person in the dealing of Toyota. They aim at ensuring that each customer who walks in and out of their doors receives the best value for their money. The aim of the company when it comes to customer relations is that there is that the customer should receive a timely order of the best and desired quality at the most affordable costs. This is the main principle that has seen the concern break into markets such as Europe and America. They offer quality and affordable automobiles at the customer’s convenience CITATION Joh11 l 1033 (Mangan and Lalwani).
To further enable their Just in Time operation strategy to work better they use both inventory management and process control software to ensure that they work efficiently. The inventory control software is set to send out an order immediately when a particular part is either required or is out of stock. It also keeps a record of the most used parts and ensures that those parts are always within the reach of the company. The process management software times and thoroughly checks all components within the production chain to ensure that they are within the company’s required standards of quality CITATION Ron051 l 1033 (Burke).
In the company, there are some restructuring programs that are going on currently. The company is trying to inculcate the concept of the consumer comes first, further into the value system of the company. Adoption of the system is aimed at increasing sales and the company’s image CITATION Ric09 l 1033 (Bohmer). With branches in over 30, South Africa, India, United States of America and Europe just to name a few countries, Toyota has to have a public image that is solid so as to continue production and experience tremendous sales numbers.
The company has also had its fair share of problems. For instance, at some point, it had to recall a large number of its automobiles due to flaws in manufacture. The company underwent great losses in terms of lawsuits. The image also suffered tremendously. This is because of the many accidents and countless deaths that the defective cars caused were blamed on the firm. That is why in its Business Process Reengineering operation strategy the business chose customer satisfaction over sales. They added the term a human touch in the principles that govern its production process CITATION Jef041 l 1033 (Liker).
Like all other companies, there is still room for potential growth within this firm. It should just not embrace the manufacture, design, and dealership of cars and other automobiles such as trucks the company should also diversify its portfolio. This is to ensure continuous growth and development and profitability
Work Cited
‘Achieving operational excellence’ PWC, http://www.pwc.com/gx/en/issues/operations.html, accessed November 22 2016
‘Operations in practice’ YouTube, uploaded by Nigel Slacks, June 25 2009, https://www.youtube.com/watch?v=okmoQ7tNf3Q&spfreload=10
‘Business processing and reengineering’, Bain & Company,
http://www.bain.com/publications/articles/management-tools-business-process-reengineering.aspx,
Accessed November 22 2016.
‘ Common challenges when implementing six sigma’ Six sigma Daily,
http://www.sixsigmadaily.com/what-are-common-challenges-when-implementing-six-sigma-in-organizations, Accessed November 22, 2016
‘Top 5- The Four V’s of Operational management,’ July 2 2013,
http://www.managersdoor.com/topic/top-5-the-four-vs-of-operations-management/,
Accessed November 21 2016
Business strategies, Wiki books, https:/en.m.wikibooks.org/wiki/Business_Strategy,
Accessed November 22, 2016
‘NRL Operation strategies,’ What is an operation strategy, http://www.nrlsolutions.com/node/24
BIBLIOGRAPHY l 1033 Ballard, Barclay. Betanews. 12 November 2016. print. 21 November 2016.
Bernroider, E. “Factors in SWOT Analysis Applied to Micro, Small-to-Medium, and Large Software Enterprises: an Austrian Study.” European management journal 20.5 (2002): 562-573.
Bohmer, Richard M.J. Designing Care: Aligning the Nature and Management of Health Care. Chicago: Havard Business Press, 2009.
Burke, Ronald J. Reinventing Human Resource Management. 3rd. New York: Routledge Books, 2005.
Liker, Jeffery K. The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. Chicago: Sage Publishers, 2004.
Mangan, John and Chandra Lalwani. Global Logistics and Supply Chain Management. New York: Havard Press, 2011.
N, Nigel and Lewis. Operation Strategy. Harlow: Pearson Publishers, 2015. Book.